Midas Funds

Fund Strategies and Market Commentaries
As of October 19, 2016

Midas Fund seeks primarily capital appreciation and protection against inflation and, secondarily, current income. The Fund is currently invested in a global portfolio of primarily large and medium mining companies with what we believe to be promising exploration potential, expanding production profiles, increasing cash flow, and/or other special growth features. Midas Fund currently expects to increase the leverage on its portfolio in the fourth quarter by adding to some current stockholdings and introducing new names into the portfolio with a focus on investments in quality companies producing precious metals and other natural resources with a growth component.  Recent outperformers in the Fund’s portfolio have been the Fund’s holdings of South32 Ltd ADRs, a diversified metals mining company demonstrating robust operating performance and strong financial results, and Ivanhoe Mines Ltd. Class A, an exploration company reporting encouraging drilling results.  Fund holdings of an intermediate producer of gold and base metals lagged over the same recent period. 

Midas Magic seeks companies with strong operations showing superior returns on equity and assets with reasonable valuations. In seeking its investment objective of capital appreciation, the Fund focuses primarily on large companies, with a broad orientation towards conservatively priced value stocks and selected growth issues. Mastercard Inc. Class A and Alphabet Inc. Class A each currently comprise more than 10% of the Fund’s portfolio. Overall, relative to the S&P 500, the Fund’s portfolio currently is more weighted in cyclical companies, such as financial services, and consumer industries, such as autos and retail, and is underweight in economically sensitive and defensive industries.  Portfolio holdings of Transocean Ltd., a leading offshore oil drilling company, and Apple Inc., a technology company, have recently contributed to the Fund’s returns.  Holdings of European banks detracted from recent Fund performance. Anticipating further market volatility as the presidential election nears, the Fund currently anticipates moderating leverage until after the market has assessed the election’s outcome.

Cautionary Note Regarding Forward Looking Statements

This release may contain certain “forward looking statements” as defined under the U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,”“will,” and similar expressions identify forward looking statements, which generally are not historical in nature. Forward looking statements are subject to certain risks and uncertainties that could cause actual results to materially differ from a Fund’s historical experience and its current expectations or projections indicated in any forward looking statements. These risks include, but are not limited to, equity securities risk, corporate bonds risk, credit risk, interest rate risk, leverage and borrowing risk, additional risks of certain securities in which a Fund invests, management risk, and other risks discussed in each Fund’s filings with the Securities and Exchange Commission. You should not place undue reliance on forwardlooking statements, which speak only as of the date they are made. Each Fund undertakes no obligation to update or revise any forward looking statements made herein. There is no assurance that each Fund’s investment objectives will be attained.